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Re: cwell338 post# 16004

Friday, 02/28/2014 3:02:30 AM

Friday, February 28, 2014 3:02:30 AM

Post# of 24848

I believe 500k per month compounding and tenn rx with dea license 500k per month.


As Bsav asked, are these numbers you are tossing around and touting intended to reflect SCRC's take or simply the high-level source revenues from which SCRC's cut is but a percentage of?

If source revenue...

For the Tenn Rx, assuming a healthy 60% gross profit on $500k (by way of comparison, JAN actual source revenue was $269k) gets us $300k. SCRC's cut is 20% of gross profits, so that means that out of the $500k in source revenues, SCRC gets to recognize only $60k in revenues per month. Extrapolate out for 3 months and we get $180k for Q2. In this scenario, you are suggesting that source revenues will almost double by Q2, which is aggressive, but given the 62% increase from DEC to JAN, this would not be unreasonable.

For the NJ Compounding Pharmacy, assuming a healthy 30% management fee applied to the $500k source revenues (by way of comparison, current actual source revenue is ~$300k per month), SCRC's monthly revenues comes to $150k. Extrapolate out for 3 months and we get $450k for Q2. In this scenario, you are suggesting that source revenues will almost double by Q2, which is very aggressive, but -- unlike Tenn Rx -- we have no basis to believe such as sharp increase will occur so quickly. (NOTE: 30% was used strictly as a placeholder strictly for illustrative purposes as no one has any clue what the actual percentage is.)

So combined, SCRC is looking at $210k per month and $630k for Q2. Personally, I think this is high, but I would take these revenues in a heartbeat.


If SCRC "take home" revenue...

For the Tenn Rx, if you are touting that SCRC will take home $500k in revenues per month during Q2, then this translates to ~$4.2M per month in source revenues. JAN source revenues were already a record-shattering $269k. You are suggesting that source revenues will increase 15-fold by the time Q2 rolls around.

For the NJ Compounding Pharmacy, if you are touting that SCRC will take home $500k in revenues per month during Q2, then this translates to ~$1.67M per month in source revenues (using the same 30% estimate for SCRC's monthly mgmt fee). Assuming this pharmacy runs 24/7, this translates to ~$55k/day. The current run rate for this pharmacy is ~10k/day in source revenues. You are suggesting that source revenues will increase over 5-fold by the time Q2 rolls around.